China's Ctrip invests $100m in VC-backed eHi Auto Services
Ctrip International, China's largest online travel agency, will invest $100 million in eHi Auto Services, a Shanghai-based car rental company backed by Qiming Venture Partners, Ignition Partners, Goldman Sachs, Jafco and CDH Ventures.
The financial details of the transaction were not disclosed. However, eHi said in statement that the deal will make Ctrip the second-largest investor after US car rental firm Enterprise Holdings, which bought a 15% stake in the company in 2012.
Established in 2006, eHi claims to be the first car rental company in China to provide end-to-end service delivery and management by leveraging its IT network. The company has a fleet of more than 13,000 vehicles and 100 different vehicle types and 400 service outlets across 80 cities.
According to AVCJ Research, eHi first received VC funding in 2006 with a $5 million investment from Ignition and Qiming. Qiminig returned in 2009 to invest $20 million alongside CDH and Jafco. The latest round in 2010 was worth $70 million and included Qiming, CDH, Ignition, Jafco plus new investors Goldman Sachs and New Access Capital.
"There will be many areas eHi and Ctrip may work together on to provide better travel products for Chinese consumer and corporate customers," said Ray Zhang, CEO and founder of eHi Auto. "As car rental has increasingly become an indispensible part of travel needs for Chinese consumer and corporate clients, we feel there are many opportunities for us as well as for Ctrip to make more convenient travel packages for customers."
The travel industry has experienced rapid growth in China in the past few years. According to PhoCusWright's research findings, China leapfrogged Japan as Asia's largest travel market in 2012 at $96.2 billion, with car rental growing the fastest of all segments.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.